Household saving is defined as the difference between a household’s disposable income (wages, income of the self-employed and net property income) and its consumption (expenditures on goods and services.)

Allstate will acquire SquareTrade with its cash and by issuing debt, the company said in a prepared statement. The transaction is expected to be a drag on Allstate's per-share earnings for three years. Thedeal is pending regulatory approvals, among other closing conditions.

Shares of Allstate slipped 1.4% to $71 in after-hours trading.

SquareTrade has been a disruptive force in the sector because of its online sales model, pricing and the information it provides about failure rates of products. It was founded in 1999 as a website that mediated disputes between eBay Inc. buyers and sellers.